Only 22 percent of the 18- to 24-year-olds in the study sample were deemed to be financially stable, according to lead author Gaurav Sinha, a graduate student in social work at the University of Illinois.

These individuals were better at planning and managing their finances, had checking or savings accounts in mainstream banks and were less likely to use costly alternative financial services such as payday lenders. They also were more likely to be white males who were employed and college educated, according to the study.

Sinha - Co-authors - Kevin - Tan - Min

Sinha and co-authors Kevin Tan and Min Zhan, both social work professors at the U. of I., examined the financial attributes and behavioral patterns of emerging adults. Based on these characteristics, the researchers classified them into four groups: financially precarious, at risk, striving or stable.

About 36 percent of the people in the study were deemed to be "financially at risk" because they had experienced a significant, unexpected drop in income during the prior year. They reportedly had no savings with which to pay their living expenses for three months if needed and said they lacked the resources to come up with $2,000 in the event of an emergency.

Group - Percent - Sample - Literacy - Sinha

The financially precarious group, which composed 32 percent of the sample, "had the poorest actual and perceived financial literacy," Sinha said. "Because they lacked access to mainstream financial institutions, they were frequent users of alternative financial...